With the increasing likelihood of a recession on the horizon as inflation rises, investors might want to turn into diversifying their portfolios with options that traditionally are less susceptible to downturns or usually recover from bear markets and recessions.

The recent CTA performances encourage institutional investors to more closely monitor this type of hedge fund. Thus, according to Preqin, 52% of them wish to increase their exposure to this type of alternative strategy this year (vs 14% last year).